Money market funds are one type of mutual fund that provides investors with immediate availability of their money, while offering a better return than some alternatives. These funds hold large quantities of short-term securities, some of which mature daily. This allows the funds to keep their share price stable, with slight changes from day to day.
Money market funds are good as short-term investments or in situations where you may want to preserve the value of your investment while earning some income. Money market funds are a useful part of any diversified portfolio, giving you liquidity and yield.
In addition to competitive yields and safety, money market accounts also may offer cash management services such as check writing and automated sweeping of cash balances to and from brokerage accounts.